There are many different ways to refer to the concept of being able to accept checks online including electronic checking (or e-checks for short), bank-to-bank transfer, or ACH (automated clearing house). There are three main reasons why it is in the best interest of you and your business to make sure your online payment services include electronic checks:
- It saves both money and time
- It is safe and secure
- It makes for an easy payment system customers know how to use
The Economic Benefits
For a lot of hard to place merchant services, the transaction fees attached to electronic checks is significantly lower than credit card transactions.
It is More Convenient and Comfortable for the Customer
There are few things more nerve wracking than typing your credit card information into a website for the first time. Electronic checks, however, tend to be more secure. It also tends to be a little easier and a little more convenient for a customer to pay by electronic check but the vast majority of online customers use charge cards. While you will have customers who hate using checks, being able to process checks online will just make your business more convenient to all customers.
It is More Convenient for You Too
With electronic checks, it is easier to set up a recurring payment (if your customer is buying something that requires such). This is hard to do with a credit card because the customer could argue that you do not have permission to bill the credit card every month. A recurring bill or payment plan on a check is almost always set with permissions allowing it to take out money when due.
Payment is Much More Likely
You do not have as much to worry about when it comes to actually getting your money with electronic checks. The only reason why you would not get your payment is if it was written for the wrong amount, was not authorized, or was processed earlier than it should have been.